Datavault: A Speculative AI Play, But Beware of Volatility

Core Insights - Datavault AI is merging blockchain and AI technologies to help businesses visualize and monetize their data, presenting a speculative investment opportunity despite inherent risks [2][3]. Funding and Partnerships - Datavault secured $150 million in funding from Scilex Holding Co., which will be transferred via Bitcoin for infrastructure projects and platform expansion [3]. - IBM will contribute 20,000 hours of intellectual support focused on platform growth and enterprise adoption, which is crucial for revenue growth [4]. Revenue Growth Projections - The company is in a hypergrowth phase, expecting revenue to increase by a high triple-digit percentage this year and next, followed by high double-digit growth in fiscal year 2027 [4]. - The upcoming fiscal Q3 2025 revenue report is anticipated to show a 200% sequential increase and a 400% year-over-year increase, driven by new data exchanges and licensing [9]. Market Sentiment and Analyst Ratings - Datavault's stock price has seen volatility, primarily driven by retail traders, with minimal institutional support and a recent Sell rating from Weiss Ratings [6]. - The current stock price is $1.70, with a 12-month price forecast of $7.00, indicating a potential upside of 311.76% [7]. Risks and Challenges - The company faces significant short interest, exceeding 20%, which could limit gains and lead to price corrections [8]. - Despite healthy balance sheet conditions, there are concerns regarding decreasing cash and current assets alongside rising debt levels [11][12].